Tabreed approves first interim dividend after record H1 results

National Central Cooling Company, better known as Tabreed, has made history by announcing its first-ever interim dividend in its 27-year journey. Shareholders at the company’s General Assembly on Monday approved the distribution of 6.5 fils per share, amounting to AED184.9 million, for the first half of 2025.

This decision underscores the company’s exceptional financial performance during the first half of the year and signals Tabreed’s commitment to rewarding investors as it continues to scale across the region.

A milestone moment in Tabreed’s history

Since its establishment in 1998, Tabreed has been a pioneer in district cooling across the Middle East. Despite decades of expansion and steady growth, the company had not declared an interim dividend—until now.

The 2025 interim dividend reflects Tabreed’s strengthened financial base and confidence in its long-term prospects. For many shareholders, the announcement was not only a reward for their loyalty but also a clear indicator of the company’s evolving maturity and stability as a publicly listed entity.

Strong first-half performance

The approval comes on the back of a record-breaking first half of 2025, where Tabreed reported:

• Revenue of AED1.11 billion, up 3% year-on-year.

• Net profit of AED276 million, highlighting the impact of both operational efficiency and increased demand.

• Capacity growth with total connected capacity reaching 1.37 million RT (refrigeration tonnes).

• A record 41,600 RT of new connections, nearly double the total capacity added in all of 2024.

These achievements underline Tabreed’s ability to maintain resilience and capitalize on expanding demand for sustainable cooling solutions, particularly in rapidly growing economies.

Cooling demand continues to surge

District cooling has become a vital part of urban infrastructure in the Gulf, where rising populations, large-scale real estate projects, and soaring temperatures have driven demand.

Tabreed’s role in delivering reliable and energy-efficient cooling services has placed it at the forefront of the industry. In 2025, this was especially evident as the company secured new contracts and expanded its footprint in both the UAE and Saudi Arabia.

The 41.6k RT of new connections in just six months illustrates the market’s robust appetite for Tabreed’s services and its ability to deliver large-scale projects on time and to the highest standards.

Regional strength: UAE and Saudi Arabia

The company’s core markets—the UAE and Saudi Arabia—remained its strongest contributors in the first half of the year.

• In the UAE, Tabreed reinforced its long-standing position as the market leader, powering landmark projects, residential communities, and commercial hubs.

• In Saudi Arabia, the company accelerated its growth trajectory, capitalizing on mega projects and infrastructure developments that demand efficient, scalable cooling solutions.

Together, these two markets have anchored Tabreed’s regional influence, setting the stage for further expansion across the GCC and beyond.

Chairman’s perspective

Dr. Bakheet Al Katheeri, Chairman of Tabreed, highlighted the significance of this achievement during the General Assembly: “Tabreed continues to build on its strong foundations, combining record first-half results with strategic milestones that reinforce the scalability of our platform. The approval of the company’s first-ever interim dividend reflects this strength and our commitment to shareholders, underlining the confidence we have in delivering sustainable long-term value.”

His statement reflects not only confidence in Tabreed’s growth momentum but also reassurance to investors that the company is balancing expansion with shareholder returns.

A shareholder-focused strategy

The interim dividend also reflects a shift in Tabreed’s capital allocation strategy. In the past, the company focused heavily on reinvesting profits into capacity expansion and acquisitions. While that remains a core focus, the decision to declare an interim dividend shows a willingness to share profits with investors without compromising growth.

This balance between reinvestment and distribution is seen by analysts as a positive signal that Tabreed has reached a level of financial strength and operational maturity comparable to global infrastructure leaders.

Growth trajectory and scalability

Tabreed’s growth story is defined by scalability. Its platform is designed to serve entire communities, industrial zones, and mega-projects efficiently. With governments across the Middle East placing sustainability at the forefront of national strategies, demand for energy-efficient district cooling is expected to grow further.

For example, Saudi Arabia’s Vision 2030 projects and the UAE’s continued focus on smart cities and green development are key areas where Tabreed sees immense opportunities.

In addition, new regional markets such as Oman, Bahrain, and Egypt have demonstrated rising demand, presenting potential avenues for expansion.

Market reaction and investor confidence

The announcement of the interim dividend is expected to boost investor confidence in Tabreed’s shares. Distributing AED184.9 million for H1 2025 reinforces the company’s profitability and ability to generate healthy cash flows.

Investors and analysts alike view the dividend approval as a milestone that could set a precedent for regular interim payouts in future years, depending on performance.

Long-term sustainability

Tabreed has consistently emphasized its role in supporting the UAE’s sustainability agenda by delivering environmentally friendly cooling solutions that reduce carbon emissions compared to traditional methods.

By expanding its network and integrating new technologies, the company is not only meeting growing demand but also ensuring its operations remain aligned with national and international climate goals.

 A new chapter for Tabreed

Tabreed’s first-ever interim dividend marks a historic moment in its journey. It is a testament to the company’s financial strength, operational excellence, and commitment to shareholders.

With record revenue, profit, and capacity growth in H1 2025, Tabreed is well-positioned to continue expanding its footprint across the region while delivering consistent value.

As the demand for district cooling intensifies in the Middle East, Tabreed stands at the forefront—balancing innovation, sustainability, and profitability. The interim dividend is more than a payout; it is a symbol of the company’s transition into a new era of growth, stability, and investor confidence.

For shareholders, the message is clear: Tabreed is no longer just a growth story—it is a growth story with dividends.